Taxation on Equities Investment

Thai taxes applicable to investors in listed companies are as outlined below:

1. Taxation of Thai or foreign investors doing business in Thailand

Types of Income (From direct investment in SET/TFEX)

Tax Rate

Capital Gains*

Individual Investor

Juristic Investor

Tax exempt

No withholding tax but must pay corporate income tax as stipulated by law.

Dividends

Individual Investor

10% withholding tax on any dividend income from listed or limited companies.

10% withholding tax on any mutual fund dividend income; or include such income in year-end taxes.

Dividends from any company promoted by the Board of Investment are tax exempt.

Juristic Investor

10% withholding tax if the taxpayer is not a listed company.

Tax exempt if the taxpayer is a listed company and has held the related shares or investment units for three or more months before and after the date of dividend payment.

Tax exempt if: (a) the taxpayer is a juristic entity holding 25% or more of the votable shares of the firm issuing dividends; and (b) the issuing company does not hold any shares issued by the taxpayer. However, the taxpayer must have held the related shares or investment units for three or more months before and after the date of dividend payment.

Dividends from any company promoted by the Board of Investment are tax exempt.

Interest Income:

Individual Investor

15% withholding tax.

Juristic Investor

1% withholding tax.

No withholding tax on interest paid by a commercial bank to a finance company, securities company, credit foncier company, or other commercial bank.

2. Taxation of foreign investors not doing business in Thailand

Types of Income (From direct investment in SET/TFEX)

Tax Rate

Capital Gains*

Individual Investor

Juristic Investor

Tax-exempt

15% withholding tax

Dividends

Individual Investor

Juristic Investor

10% withholding tax

10% withholding tax

Interest Income:

Individual Investor

Juristic Investor

15% withholding tax

15% withholding tax

Note* : Capital gains taxes are the same whether trading occurs on the Thailand Futures Exchange Pcl (TFEX) or on the Stock Exchange of Thailand (SET).

3 . Double Taxation Treaties

So as to alleviate and eliminate duplicate taxation for certain foreign investors and thereby encourage foreign investment, the Revenue Department has negotiated and signed Double Taxation Agreements (DTA) with 57 countries. Foreigners from the countries listed below are exempt from taxes on capital gains.

*Data current as of September 2014

30 countries are exempted from capital gains taxes

without condition

with conditions apply

1) Denmark

1) Netherlands

2) Germany

2) United Kingdom & North Ireland

3) France

3) Canada

4) Singapore

4) Switzerland

5) Italy

5) Israel

6) Belgium

6) Spain

7) Pakistan

7) Uzbekistan

8) India

8) Cyprus

9) Laos

9) Norway

10) Mauritius

10) Slovenia

11) Bangladesh

11) Turkey

12) The United Arab Emirates

12) Hong Kong

13) Oman

13) Myanmar

14) Taiwan

14) South Korea

15) Kuwait

16) Republic of Estonia

27 countries are not exempted from capital gains taxes

1) Malaysia

15) Romania

2) Philippines

16) The United States of America

3) Republic of Poland

17) Grand Duchy of Luxembourg

4) Republic of Finland

18) The Federal Democratic Republic of Nepal

5) Republic of Austria

19) New Zealand

6) People's Republic of China

20) Bulgaria

7) Kingdom of Sweden

21) The Republic of Armenia

8) Hungary

22) Indonesia

9) Australia

23) Kingdom of Bahrain

10) Sri Lanka

24) Ukraine

11) Japan

25) Republic of Seychelles

12) Vietnam

26) The Russian Soviet Federative Socialist Republic

13) Czech Republic

27) The Republic of Chile

14) South Africa

(Investors should verify the correctness of the information and conditions of tax exemption under Double Taxation Agreements (DTA) on the Revenue Department’s website: www.rd.go.th.)

4.Value Added Tax (VAT)

Investors must pay 7% VAT on service fees and commissions charged by securities brokerage companies.

5. Stamp Duty (Instrument transferring)

Under the Thai Revenue Code, both foreign and domestic transferors of share or debenture certificates must pay for duty stamps, to be affixed to the certificates (if any) according to the share’s book value or the price on the transfer instrument (whichever is greater). The stamp duty rate is THB1 for every THB 1,000 or fraction thereof. However, the following transfers are exempt from stamp duty:

Transfers of Thai government bonds.

Transfers of listed securities for which the Thailand Securities Depository Co., Ltd. (TSD) is the registrar.

Note: Contents of this web site are provided for preliminary information and educational purposes only, and are not to be construed as advice or recommendations. The Stock Exchange of Thailand including the Thailand Futures Exchange Pcl., accept no liability, direct or indirect, for decisions made based on the information contained herein. As laws and regulations may be amended without notice at any time, investors should consider the correctness of the information or seek the advice of professionals before using it in decision-making.

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